Common use of Operator’s Authority Clause in Contracts

Operator’s Authority. Operator shall have the authority to procure and make expenditures for such items, parts, materials and services as are deemed necessary by Operator in completing the Work, provided that such procurement and expenditures comply with the Annual Maintenance Plan (or, if applicable, the Pre-Commercial Operating Budget), the Requirements, and the other terms and conditions of this Agreement. In doing so, Operator shall keep Owner timely informed and obtain Owner’s prior approval for any expenditures that are not set forth in the Annual Maintenance Plan or that do not qualify as Permitted Excess Expenditures. Operator shall not require Owner’s prior approval, and Owner shall reimburse Operator for, any Permitted Excess Expenditures, provided however, if the payee of a Direct Operating Expense or Capital Improvement Expense is the Operator or an Operator Related Party, such expense shall not exceed the applicable line item amount set forth in the applicable Annual O&M Budget unless the Operator has received the prior written consent of the Owner in respect to such expense. Notwithstanding the foregoing, during an Emergency or other unexpected contingency, Operator is authorized to make such expenditures and take such other actions, whether budgeted or not, as Operator shall determine to be reasonably necessary in order to comply with this Agreement, applicable Permits, Applicable Laws or to otherwise protect the Plant, individuals or other property and to maintain the Plant in a safe condition consistent with Prudent Operating Practices. If any such unbudgeted costs and expenditures are incurred, Operator shall promptly notify Owner of such action, specifying the particulars of the events giving rise to such costs and expenditures, and shall promptly submit a revision to the Annual Maintenance Plan to encompass the costs and expenditures incurred, as well as those expected to be incurred, as a result of such Emergency or other unexpected event, and such costs and expenditures reasonably incurred shall be reimbursed in accordance with Exhibit E. Notwithstanding anything in this Section 5.1 to the contrary, Operator shall not make any Permitted Excess Expenditures or other expenditures (including expenditures related to an Emergency or unexpected contingency) not included within an Annual Maintenance Plan (or, if applicable, the Pre-Commercial Operating Budget) if such expenditure or Owner’s reimbursement of the same would cause Owner to breach or otherwise fail to comply with the LGA.

Operator’s Authority. Operator shall have the authority to procure and make expenditures enter into purchase orders on behalf of Owner or a Project Company in a form approved by Owner, as the agent of Owner or such Project Company, in order to obtain the performance of Additional Services for such items, parts, materials and services as are deemed necessary by Operator in completing the Work, Plant from independent third parties; provided that such procurement purchase order is not expected to be in excess of $10,000 and expenditures comply with that the Annual Maintenance Plan (or, if applicable, amount of such purchase order will not exceed the Pre-Commercial Operating Budget), the Requirements, and the other terms and conditions of this Agreement. In doing so, Operator shall keep Owner timely informed and obtain Owner’s prior approval budgeted amount for any expenditures that are not such Additional Service set forth in the Annual Maintenance Plan by more than $2,000. If a purchase order would result in expenditures in excess of $10,000 or that do not qualify as Permitted Excess Expenditures. Operator shall not require Owner’s prior approval, and Owner shall reimburse Operator for, any Permitted Excess Expenditures, provided however, if cause the payee of a Direct Operating Expense or Capital Improvement Expense is the Operator or an Operator Related Party, budgeted amount for such expense shall not Additional Services to exceed the applicable line item amount set forth in the applicable Annual O&M Budget unless Maintenance Plan by more than $2,000 or if the Additional Service requires an agreement in a form substantially different from the form of purchase order approved by Owner, Operator has received the shall not enter into such purchase order without Owner’s prior written consent consent. Owner shall pay, or shall cause the applicable Project Company to pay, the contractor performing under any such purchase order directly, and Operator shall have no liability or responsibility to pay any such contractor out of the Owner in respect to such expenseits own funds. Notwithstanding the foregoing, during an Emergency or other unexpected contingencyEmergency, Operator is authorized to make such expenditures and take such other actions, whether budgeted or not, as Operator shall reasonably determine to be reasonably necessary in order to comply with this Agreement, applicable Permits, Applicable Laws or to otherwise protect the Plant, individuals or other property and to maintain the Plant in a safe condition consistent with Prudent Operating Practices. If any such unbudgeted costs and expenditures are incurred, Operator shall promptly notify Owner of such action, specifying the particulars of the events giving rise to such costs and expenditures, and shall promptly submit a revision to the Annual Maintenance Plan to encompass the costs and expenditures incurred, as well as those expected to be incurred, as a result of such Emergency or other unexpected event, and such costs and expenditures reasonably incurred shall be paid directly by Owner or the applicable Project Company or reimbursed in accordance with Exhibit E. Notwithstanding anything in this Section 5.1 to the contrary, Operator shall not make any Permitted Excess Expenditures or other expenditures (including expenditures related to an Emergency or unexpected contingency) not included within an Annual Maintenance Plan (or, if applicable, the Pre-Commercial Operating Budget) if such expenditure or Owner’s reimbursement of the same would cause Owner to breach or otherwise fail to comply with the LGAincurred directly by Operator.

Operator’s Authority. Operator shall have the authority to procure and make expenditures for such items, parts, materials and services as are deemed necessary by Operator in completing the Work, provided that such procurement and expenditures comply with the Annual Maintenance Plan (or, if applicable, the Pre-Commercial Operating Budget)Plan, the Requirements, and the other terms and conditions of this Agreement. In doing so, Operator shall keep Owner timely informed and obtain Owner’s prior approval for any expenditures that are not set forth in the Annual Maintenance Plan or that do not qualify as Permitted Excess Expenditures. Operator shall not require Owner’s prior approval, and Owner shall reimburse Operator for, any Permitted Excess Expenditures, provided however, if the payee of a Direct Operating Expense or Capital Improvement Expense is the Operator or an Operator Related Party, such expense shall not exceed the applicable line item amount set forth in the applicable Annual O&M Budget unless the Operator has received the prior written consent of the Owner in respect to such expense. Notwithstanding the foregoing, during an Emergency or other unexpected contingency, Operator is authorized to make such expenditures and take such other actions, whether budgeted or not, as Operator shall determine to be reasonably necessary in order to comply with this Agreement, applicable Permits, Applicable Laws or to otherwise protect the Plant, individuals or other property and to maintain the Plant in a safe condition consistent with Prudent Operating Practices. If any such unbudgeted costs and expenditures are incurred, Operator shall promptly notify Owner of such action, specifying the particulars of the events giving rise to such costs and expenditures, and shall promptly submit a revision to the Annual Maintenance Plan to encompass the costs and expenditures incurred, as well as those expected to be incurred, as a result of such Emergency or other unexpected event, and such costs and expenditures reasonably incurred shall be reimbursed in accordance with Exhibit E. Notwithstanding anything in this Section 5.1 to the contrary, Operator shall not make any Permitted Excess Expenditures or other expenditures (including expenditures related to an Emergency or unexpected contingency) not included within an Annual Maintenance Plan (or, if applicable, the Pre-Commercial Operating Budget) if such expenditure or Owner’s reimbursement of the same would cause Owner to breach or otherwise fail to comply with the LGA.E.